In a newly released memoir, named Ithaki, the former prime minister Tsipras spares no criticism as he revisits the chaotic era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, Tsipras selected that maverick academic Yanis Varoufakis to be the finance minister mainly because of the latter's global profile and Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more like a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras alleges how Varoufakis had his own agenda which included advancing Varoufakis's publications as well as experimenting with his own economic models using Greece instead of truly advocating the country's economic stability.
He noted that the negotiations to avoid bankruptcy became “not only a method of achieving a better deal for the country. They were an experiment, an historic opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
On the line lay both Greece's future but also those harsh austerity policies required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move that threw Europe into a further crisis of identity.
Although the referendum was carried decisively by those who opposed austerity, the prime minister was forced but to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
He further claimed how his aggressive approach left him more and more alone with colleagues, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked anger along with shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
